Association for     Participatory     Democracy

Print version. Published on www.e-democracy.md Original: /en/e-journal/20071130/index.shtml

Activity of Public Institutions

Parliament
Government
Presidency

Party legislation: Quo Vadis and how?.. by Sergiu Grosu

Activity of Public Institutions

Parliament

1.1. Appointments

• Sergiu Furdui was appointed deputy chairman of the Supreme Court of Justice (SCJ) Criminal College for a four-year term;
• Ion Arhiliuc was appointed SCJ judge.

1.2. Legal acts

State budget law for 2008. The parliamentary majority has voted the document in spite of protests of the opposition, with the latter blocking the stall and the presidium of the Parliament. The Our Moldova Alliance (OMA) faction demanded the living broadcasting of the plenary sitting, saying that the budget law is used for the interests of the ruling party while proposals by the opposition are unjustifiably turned down in a secret regime. Lawmakers representing the Democratic Party of Moldova and the Party of Social Democracy left the sitting hall as a sign of protests, saying that the budget expenses favour the Party of Communists of the Republic of Moldova (PCRM). PCRM representatives noted that they have given green light to certain initiatives of some commissions, but the proposals seeking expenses in the amount of about 2.6 billion lei and possibilities to increase them have been studied in the context of general revenues and expenditures that the Parliament had adopted in the first and second readings.

Law on modification and completion of some legal acts (publishing in the state register of legal acts). It obliges the legal information centre to publish official acts on the website and preserve these documents. Also, it regulates the publishing of rectifications and changes in official acts on the website.

Law on modification and completion of some legal acts (advertising of judgments). The law is adopted to execute the action plan on implementation of the Preliminary Country Plan of the Republic of Moldova within the U.S. Millennium Challenge Account, in order to ensure the respect and advertising of judgments and rulings. It stipulates the publishing of final decisions on websites of law courts, reports on examination of cases and honouring of this commitment by every judge. The law will enter into force after the elaboration of additional regulations, opening of websites, allocation of necessary funds and materials.

Law on modification and completion of certain legal acts (declaration of incomes and estate by judges). It obliges judges to declare their incomes and estate and their declarations will be published; it aims to enhance the transparency of the Superior Council of Magistracy and regulates related aspects.

Law on modification and completion of the law on petitioning. It regulates the online petitioning procedure accordingly to the law on electronic document and digital signature.

Draft law on rectification of the 2007 state budget. The document adopted in the first reading increases the incomes by 919.9 million lei and expenses by 1,126,000,000 lei, while the budgetary deficit accounts for 207 million lei. The changes are linked to additional incomes and revenues expected until the end of this year, which will be particularly collected from income taxes, taxes on commodities and services, VAT, etc. More than 436 million lei of the additional revenues will be allocated for salaries and pensions, about 132 million lei for road repairing, 92 million lei will be spent to increase the statutory capital of the railway enterprise of Moldova CFM (in connection with the construction of the Cahul-Giurgiulesti railway), about 65 million lei will be allocated to remedy the consequences of the 2007 summer drought.

1.3. Parliamentary control. Statements

Questions. Interpellations

PCRM Deputy Anatolie Zagorodnii has asked the Intelligence and Security Service to report if the journalist of the Moldova Suverana newspaper, Mihai Contiu, has told the truth when he said that Romanian intelligence services had imposed him to spy upon persons from the entourage of Moldovan president and politicians, artists.

Parliamentarian Valentina Cusnir has demanded the Government to report the credits that it has taken from 2001 to present and changes made in the central public administration apparatus after April 2005.

Social Liberal Deputy Igor Klipii has asked the prime minister to report relations between Moldova and the European Union, perspective to sign an EU association agreement and reasons of non-execution of some provisions of the EU-Moldova Action Plan. In another interpellation, Klipii asked the minister of education and youth to provide ample information regarding trials lost by the ministry and non-execution of final judgments by minister. He noted that this minister is "a leader in not executing judgments" and this problem often fuels ECHR sentences."

Democratic Deputy Dumitru Diacov has appealed to the Central Electoral Commission and Prosecutor-General’s Office to investigate how bags with ballot papers from the Hancesti district elections are preserved, as there are speculations that one has access to them and could influence the recounting of the votes.

Statements

The OMA faction has released a statement concerning the draft state social insurance budget law for 2008. It fears that the budget has a declarative "social orientation" while the discriminatory trend of extorting revenues on shoulders of workers continues.

Government

2.1. Appointments. Reshuffles

• Ion Ciobanu was appointed deputy minister of education and youth.
• Violeta Ivanov was assigned deputy minister of environment and natural resources.
• Nicolae Alexei was relieved from the office of State Environmental Inspectorate head.

2.2. Decisions

Concerning the implementation of the state programme on building the real estate cadastre. Although many actions have been taken, the Government found out that the programme on introduction of the new real estate estimation system aimed to tax the real estate accordingly to the market value is slowly implemented. Insufficient cooperation between territorial cadastral offices and local public administrations delayed the real estate evaluation process. The Government instructed the Ministry of Local Public Administration to take actions in order to urge local authorities to issue the lists of real estate owners, while the Agency of Land Relations and Cadastre must finalise the evaluations, study all appeals regarding correctness of housing evaluation by December 15, 2007.

Decision on national commission for the monitoring of the weapon and disarmament control. The commission is created to execute international acts on combat of terrorism, control on weapons and munitions, with this measure being part of the EU-Moldova Action Plan.

Decision on creation and implementation of the automatic information system called single licensing register. The Licensing Chamber will be the beneficiary and the Ministry of Information Development, while subordinated structures will be in charge with executing the register. The finances needed to build and implement the system will be allocated from the fund for the building of information society Electronic Moldova.

Decision on building the national museum Capriana Monastic Complex, a branch of the National Museum of Archaeology and History of Moldova. The Ministry of Culture and Tourism will approve the regulation of the museum, while the Ministry of Finance will fund the opening and work of the museum from general revenues of the 2008 state budget.

Decisions approving some draft laws:

• Concerning the public function and status of public functionary;
• Concerning popular guards;
• Extending the safeguard measures on Moldovan sugar imports for a four-year term. They are extended because the situation of the sugar processing industry has partly improved.

Decisions approving concepts, strategies, plans:

• The national consumer protection strategy for 2008–2012;
• The concept on integrated automatic migration and asylum information system;
• The action plan on implementation of the Law# 96-XVI from April 13, 2007 on public procurements.

Decisions on allocation of funds:

• The Government Apparatus is allocated 697,000 lei from the reserve fund "to purchase a vehicle";
• The Ministry of Agriculture and Food Industry is allocated 40 million lei raised on the special humanitarian aid account to remedy the consequences of the drought. The allocations will be used to purchase Diesel oil for subsidising the farm land processing expenditures;
• More than 3.6 million lei is allocated to district councils to execute decisions by law courts and compensate the value of property of rehabilitated persons.

2.3. Sittings. Decisions. Statements

Implementation of the "state nomenclature of drugs"

The prime minister has convoked a sitting and learned that the drug sale monitoring software was installed in about 500 pharmacies and branches until now, or approximately 80 percent of all pharmacies. Agency officials noted that the implementation of this system has essentially improved the record of quality of medications sold to population and reduced the fiscal evasion in this sector. Also, the drug registrations rose by 23.5 percent and pharmacies which implemented the record system have increased nearly three-fold the collections to the budget compared with 2005. Competent ministries will ensure the integration of the software within one month, while the Drug Agency jointly with the Ministry of Information Development will update the drug classifier and will improve the software installation mechanism, ensuring the installation of software in all pharmacies by the end of this year.

Presidency

3.1. Decrees

• Svetlana Caitaz, judge of the Supreme Court of Justice, was awarded the Civil Merit medal;
• Gheorghe Rusnac was appointed Moldovan ambassador to Italy.

3.2. Sittings. Decisions. Statements

Functioning of the Competition Agency

The chief of state has attended a broadened sitting of the Administrative Council of the National Agency for the Protection of Competition, which made the totals of activity of this institution for nine months after being created. Vladimir Voronin noted that Moldova is implementing European standards in all fields of society life, including economy, and the country cannot be an EU member without competitive commodities and services. According to Voronin, the Moldovan economy may become competitive including with the condition to develop the competition on domestic market and the real competition must become an efficient macroeconomic mechanism, really influence the inflation and employment. The president noted that the state leadership, Government have combated the sabotage of clans and they finally created a structure to develop the competition and improve the control on respect for the rules of the game on the commodity and service market, but the agency must not become a police body.

Supreme Security Council sitting

Vladimir Voronin has chaired a sitting of the Supreme Security Council, which studied issues related to information security of Moldova and measures to ensure it. According to the chief of state, the process of building the information society implies certain risks for information security and national security of the country. On this occasion, it was noted that the information security in Moldova is insufficiently ensured:

• The adoption of the state information security concept is delayed;
• A methodological and practical coordination of systems of public administration authorities is absent;
• Databases of public authorities are not adjusted to effective requirements and they are not interconnected;
• Public administration bodies insufficiently use information technologies;
• Information technologies are not used enough;
• Electronic communication systems, legal and normative databases, websites of authorities are episodically and secondarily visited.

The Government will speed up the elaboration of the information security concept; will ensure the standardisation of special electronic databases of public authorities, and their reciprocal integration under conditions of information security. Also, the sitting welcomed the intensified development of information networks, the efficient integration and securing of databases of public authorities, the granting of methodological and practical assistance to public authorities to implement and use modern information technologies.

Implementation of regulatory reform

The Ministry of Economy and Commerce has reported the implementation of the law on revision and optimisation of the normative framework regulating the entrepreneurship (the so-called Guillotine I) and the law on basic entrepreneurship regulatory principles (Guillotine II). It noted that more than 1,000 normative acts regulating the entrepreneurship have been revised and optimised at the first stage of implementation of the regulatory reform (2004–2006), and half of them have been abrogated. More than 80 laws on entrepreneurship have been modified at the second stage of the reform to enhance the direct action of laws, prevent contradictions, annul double provisions and ensure their uniformity. The chief of state ordered the state commission in charge with regulating the entrepreneurship to continue its work and backed an idea to work out a new law on licensing, which would bring a single approach of the state policy regulating the licensing of entrepreneurship. The draft law would clearly and transparently stipulate the licensing criteria; the authority in charge with issuing licences; the categories of licence holders; the control on respect for legislation on licensing; the licensed activities. Also, the new legal act would legalise the "one-stop-shop" principle, which is not stipulated by law at present.

Speeding the elaboration of the National Development Plan

Mr. Voronin has chaired a sitting of the National Committee for the Elaboration of the National Development Plan (NDP) for 2008–2011. According to a report on elaboration of this document, the structure of the document includes the National Development Plan Strategy and the Action Plan on Implementation of NDP. The plan is based on five strategic priorities of Moldova: a) consolidation of a modern democratic state based on the supremacy of the law; b) settlement of the Transnistrian conflict and reintegration of the country; c) enhanced competitiveness of national economy; d) development of human resources, employment and promotion of social inclusion; e) regional development. The sitting underlined the opportunity of modifying the final draft by including recent presidential initiatives on strengthening of confidence between the two banks of the Dniester River. The draft NDP will be shortly delivered to the Government as a legal initiative in order to be approved.

Execution of the "Satul Moldovenesc" National Programme

A meeting convoked by chief of state has made the totals of actions stipulated by the Satul Moldovenesc (Moldovan Village) National Programme for this year and stressed new tasks aimed to optimise the accomplishment of goals.

It was noted regarding the gasification area that the objectives concerning the building of natural gas distribution networks and gasification of rural establishments have been accomplished (807 localities have been connected to gas pipes since 2002, 6 districts have been wholly connected, 7 districts were connected 60–90 percent, 6 districts 40–60 percent, and 14 administrative territorial units up to 40 percent). These achievements intensify the implementation paces of the National Gasification Programme, and the chief of state instructed competent authorities to accelerate the gasification process in villages, so that 19 districts of the country to be supplied natural gas by the end of 2008.

As regards the implementation of the drinkable water providing and sewerage programme, it was noted that the Government and local public authorities should accelerate this process. Inter-district water pipes shall be put into operation at a maximum capacity, some localities shall be connected to central water pipes, branch pipes shall be constructed, sewerage systems and residual water filtering stations shall be renovated.

Actions taken in agriculture sector aimed to consolidate farm land and implement national programmes in this area. As of January 1, 2007, 211 agricultural cooperatives were working in Moldova, and another 18 cooperatives opened in 2007. There are 177 technological and machine stations at present. As many as 123 processing enterprises have been renovated in 2005–07, with 382 procurement facilities operating in villages. Vladimir Voronin indicated the need of encouraging the opening of crop processing enterprises, recommending the Government to work out a draft law to award facilities to investors who would open modern crop processing enterprises in rural areas, accordingly to European requirements and standards. The president also stressed the need of intensifying the introduction of ecological agriculture, instructing the competent ministry to take more decisive measures in this respect.

As regards accomplishments in education sector, the number of kindergartens has increased from 1,100 up to 1,356 in the past three years, being endowed with teaching materials, artistic literature and toys. Pre-university institutions were endowed with equipment for all subjects for the first time in the past 20 years. All high schools in Moldova are connected to the Internet and have modern computer classrooms, and another 50 high schools have been endowed with educational software for 4 subjects. Voronin underlined the need of identifying sources in order to renovate kindergartens and pre-university institutions, cultural facilities and libraries in rural areas.

The territorial transportation infrastructure shall develop. Given the deficit of funds for capital repairing of local roads, it was proposed to involve the Ministry of Transportation and Road Management in renovating a road metal segment by washing away, levelling and rolling it. A decision on further actions will depend on results of this pilot project.

The results of the cooperative infrastructure development have been appreciated: 578 trade public food facilities have been modernised in 2005–07, 26 acquisition units and 179 branches completed the crop procurement network, and the service volume of consumer cooperation has increased.

The Government was instructed at the end of the sitting to study the pace of implementation of the Satul Moldovenesc National Programme including in every ministry, so that to take concrete measures and execute the document.

"Discussions with President" Broadcast

The chief of state has approached problems of interior and foreign policy during a traditional TV broadcast aired by NIT:

• He invited political opponents to comment on the new draft PCRM Programme published in a 500,000-copy circulation, in order to study it by March 1, 2008;
• Pensions will not grow in the near future because there is a big problem to collect means from farmers to the social fund – only 7 percent of collections come from farmers while 93 percent of pensions are paid to citizens from the state budget. The chief of state revealed that a one-percent rise of pensions costs about 80 million lei a year and the Government is in charge with guaranteeing and indexing pensions on time, accordingly to the law;
• The president was sceptical with the future of the major coalition in the Chisinau Municipal Council and partnership between the Democratic Party and the Social-Liberal Party, saying that no coalition in Moldova has resolved anything until now and the democrats have nothing in common with the social-liberals;
• The state budget of Moldova has grown 6.7-fold in the past seven years and it will be the equivalent to eight budgets of 2001 by the end of next year;
• He rejected the accusations of the opposition that more transfers for communist local authorities have been foreseen when the 2008 state budget law was elaborated. Voronin noted that all estimates met the norms and it would be a mistake to deprive of resources in 2008 the districts where the PCRM was short of several mandates to win. The Government was not instructed against these districts because "such moves would run counter communists";
• Invoking the example of the new district elections in Rezina, the chief of state was sure that the communists would win new elections in Chisinau;
• Opposition parties win elections by lying and bribing electors;
• It was expected that divergences in the Moldova-Romania relations would be remedied after Romania’s accession to the EU, but it is not so. For this reason, Moldovan authorities will approach these relations at the EU level, not at a bilateral level." Voronin accused Romania of voting against trade preferences for Moldova in the European Parliament and noted that Romania’s actions would synchronise with those of Tiraspol, as Romania raises the language issue, seeks the revision of the World War II results and Helsinki Treaty when the Transnistria settlement negotiations should restart.

The most controversial statement delivered during the broadcast envisaged the functioning of the Metropolitan Church of Bessarabia and a recent decision by the Romanian Orthodox Church Synod to open three dioceses within the Bessarabian Metropolitan Church. According to the chief of state, Moldovan authorities could withdraw from the ECHR judgment on registration of the Bessarabian Metropolitan Church in Moldova, if the decision on opening of three new dioceses is not suspended. Voronin fears that this decision of the Romanian Patriarchate targets against the sovereignty and independence of the Republic of Moldova, against Moldovan nation.

Legal experts and opposition politicians^[1] commented the president’s statements on withdrawal from the ECHR decision, describing them as biased and aberrant and warning that such actions could exclude Moldova from the Council of Europe and this would close its European integration way.

Economic Policies

1. Prices and inflation

Prices still are on the rise…

Prices of a number of products continued to grow in November. In particular, prices of food products have grown. Consequences of the last summer drought fuelled much the prices of food products. The inflation of food prices could have serious impacts on Moldovan people, who spend much of their earnings on food. Moldovans consume two-fold more food products (as share in the consumer basket) than other Europeans because they are poor. The poorer one is the more food products it consumes as share in the total because the need of food is a priority and all the earning is spent on it. The November evolution of prices is expected to raise the monthly inflation rate up to about 20 percent and the cumulated rate for 11 months could reach 13 percent. The higher November inflation rate will be also linked to dearer fuels on domestic market.

NBM "will control" inflation…

The National Bank of Moldova governor has said two weeks ago that the direct inflation targeting process will begin soon. The initiative of the central bank to officially introduce the inflation targeting is welcome in general. In addition, it is important that the monetary authority is very concerned with evolution of Moldovan inflation. However, there are many risk factors that the central bank cannot control and, therefore, the NBM is not prepared yet to introduce the direct inflation targeting. The new regime could be introduced only after a series of premises: when the annual inflation rate counts for a single figure (it is about 14 percent in Moldova); the central bank enjoys a full operational independence; the financial sector is stable and strong, in spite of the need to enhance the financial intermediation; the fiscal dominant is not a problem any longer (the public debt and the budgetary deficit are on the decline); the inflation targets for next years were agreed with the Government; the bank strengthened its inflation forecast capacity; the success of disinflation process in the past years strengthened the credibility of NBM. These premises are not accomplished here and there.

…in spite of clear risks

NBM will face major dilemmas even if it introduces the inflation targeting. They would come from dearer petrol, natural gas and energy agents in general; inflationist expectations of population; speculative market trends; massive remittances and, of course, the relation between leu and main reference currencies (USD and euro). The later, in particular the cost of NBM interventions on currency market, the cost of sterilisation of liquidity of currency excess could affect the inflation targeting process. The leu has appreciated very much versus dollar even in nominal terms (more than 12 percent this year) and versus euro in 2007, and this fact produced a major controversy regarding the impact on exports, external deficits. The export-oriented sectors are strongly affected and foreign deficits have boomed compared with last year.

2. Real sector

Moldovan industry is on a continuous decline…

The industrial production decreased by more than 9 percent in October and it registered a handicap of 0.7 percent in ten months. Thus, the very optimistic 8.5-percent growth forecast estimated by Government for 2007 is failed. According to official statistics, all industrial enterprises manufactured goods worth over 21.1 billion lei (1.8 billion dollars) in current prices. The decline of industrial production compared with January-October 2006 was linked to the reduction of wine production by 34.2 percent, sugar by 53.3 percent, distilled spirits by 31.7 percent, cigarettes by 9.5 percent. Even more, the production volume of food and drink industry has decreased by 7.6 percent. The Moldovan industry declined by approximately 7 percent last year including because of the Russian embargo on Moldovan wines.

3. Financial-banking sector

Bank assets up to 2.75 billion dollars…

The overall assets of the banking system rose by 950 million lei in October up to about 31 billion lei (2.75 billion dollars). They rose by more than 36 percent in January-October 2007 and over 1.5-fold compared with the similar period of 2006. The rise of assets of commercial banks was particularly due to the growth of the credit portfolio and deposits by population, as well as to the continuous advance of investments in banks’ capital. The supply of deposits attracted by banks rose by about 33 percent in January-September 2007. A comparable growth was registered for the credit portfolio of banks. It has increased by more than one third in the period concerned. At the same time, deposits and credits rose by 40 percent and 52 percent compared with the similar period of 2006.

Bank deposits estimated at over 1.7 billion dollars…

Bank deposits rose by more than 380 million lei in October, up to about 19.2 billion lei or over 1.7 billion dollars. They rose due to higher interest rates on credits in lei and foreign currency introduced by banks. Thus, the medium interest rate on forward deposits in lei rose by 0.6 percentage points in October, up to 15.47 percent, while the rate on deposits in foreign currency increased by 0.2 percentage points, up to 6.12 percent on average. The growth was particularly due to the rise of deposits in Moldovan lei by more than 3 percent, while deposits in foreign currency increased by one percent. The rise of deposits was also influenced by attractiveness of deposits in lei, following the continuous appreciation of Moldovan leu versus dollar and euro. This trend could be observed till the end of this year.

…while credits up by over 40 percent

The supply of credits released to economic agents and population has grown by more than 40 percent in 10 months of this year, up to about 19.18 billion lei (1.7 billion dollars). The rise was linked to a 2.5-percent growth of the supply of credits in Moldovan lei and a 4.6-percent advance of credits in foreign currency. Banks released credits in lei worth more than 1.32 billion lei in October. Legal entities received 71 percent of these credits. The medium interest rate on credits in lei remained at the level of 18.97 percent in October, like in September, while the medium rate on credits in foreign currency decreased by 0.8 percentage points, down to 10.8 percent.

Moldovans face most barriers to financial access, World Bank report says…

Moldova is part of the last four countries in Central and East Europe regarding the financial access among 24 states covered by the latest World Bank report on this issue. Poland faces most barriers to financial access, followed by Moldova, Bulgaria and Romania. Lithuania, Estonia and Latvia envoy the easiest financial access in the region, and they approach the rate 2. The top is based on rates from 1 to 5, with Lithuania being rated the highest mark – 4.5, and Moldova, Albania and Ukraine 0. At the same time, Romania was rated 0.5. The "Finance for All" Policy Research Report is based on data for 2006.

The report underlines the importance for emerging states to adopt the Basel II provisions, estimating this way a considerable development of financial information system. The more sophisticated the statistic researches on risk of credits are the more important advantages small borrowers enjoy due to cheaper loans, say World Bank experts. According to the research report, the entry of big international players on emerging financial-bank markets does not necessarily ensure an easier access to financial information. Many foreign banks are relatively big groups which could face difficulties in understanding some aspects of the domestic business culture. Big banks have an advantage regarding major transactions, but small domestic banks are advantaged regarding loans released to small and medium businesses, it added.

Transdnistrian Problem

After October, November is over…
Igor Botan

It seems that the October initiatives by President Vladimir Voronin released in three interviews with two Moscow-based newspapers will have the fate of precedent proposals; that means mediators and observers will welcome them in continuation, they will fuel new debates and consultations, etc., but they will not have a significant impact. In November, immediately after the initiatives seeking the restoration of mutual confidence between the conflicting sides, restoration of the common infrastructure, demilitarisation and disarmament, recognition of the property right on Transnistria-based enterprises in exchange for progress in elaborating the legal status of the separatist region, and the settlement of the conflict, a series of events dashed any optimistic expectations. Some participants in the "Five-Plus-Two" negotiations were the main generators of these events, which deepened the discrepancies between the conflicting parties rather than approached them on basis of President Voronin’s initiatives.

a) Tiraspol administration

Transnistrian leaders commented with sarcasm the proposal by President Voronin, describing them as "paper initiatives", fanciful and unreal, good for propagandistic campaigns, and ignoring the participation in 7 working groups created under the Moldovan Government Decision # 1178 from 31.10.2007 "to implement the initiatives by Moldovan President aimed to strengthen the confidence and security in the context of the Transnistrian settlement process." The negative remarks by Transnistrian leaders came on background of a visit to Moscow by Transnistrian leader Igor Smirnov, who brought an encouraging message to Tiraspol that Russia would eventually resume the economic support for Transnistria, accordingly to the so-called "Zhukov-Smirnov Protocol" signed in May 2006. Russia ceased its economic-financial aid in 2007, after the Transnistrian administration has inappropriately used it and particularly after a scandal related to the use of the funds for the current gas consumption, resources gathered on GAZPOMBANK accounts chaired by Smirnov family.

On November 4, Igor Smirnov attended the "summit of heads of state of the Organisation for Democracy and Rights of Nations" created by Abkhazia, Transnistria and South Ossetya on June 14, 2006. The meeting approved documents contrary to President Voronin’s initiatives, in particular, the status of this "separatist international"; the economic, financial and humanitarian cooperation framework; strengthening and priority of relations with the Russian Federation; maintenance of the Russian military presence in the regions concerned.

b) Moldovan authorities

Chisinau has launched a campaign to warn the Transnistrian residents that the Tiraspol administration has rent the farm land to some firms for a 99-year term. President Voronin invited Transnistrians to appeal upon competent bodies of Moldova in order to receive property titles for free, so that to self-protect against an eventual disinheritance. In their turn, Transnistrian authorities bitterly reacted to the Chisinau-held campaign, invoking the need of reforming the agro-industrial complex in the region and expressing confidence that none of residents of the breakaway enclave will call on Moldova’s services.

The Ministry of Information Development (MID) promoted on November 7 the "temporary regulation on free traffic of vehicles with irregular number plates in Moldova," which says that cars registered in Transnistria will be banned to cross the Moldovan borders starting January 1, 2008, and they will be prohibited on the right bank of the Dniester River starting January 1, 2009. This decision raised queries. Transnistrian leaders described it as a proof that President Voronin’s initiatives are a screen which hides the intensions to press Tiraspol. In turn, mediators and observers of the "Five-Plus-Two" format raised concern that Chisinau did not coordinate this action with them, the least with Ukraine, which could simply ignore it and Chisinau could have to give up its intentions, the way when it had plans to control the imports in Transnsitria.

c) European Union

The European Parliament (EP) adopted on November 15, 2007 a resolution on consolidation of the European Neighbourhood Policy, recognising the possibility of principle for the accession of Ukraine and Republic of Moldova to the EU. In this context, Article 37 of the Resolution says that the EU "Encourages Ukraine, within the framework of its alignment with the EU?s Common Foreign and Security Policy declarations and positions, to join in the restrictive measures taken by the EU against the leadership of the Transnistrian region of Moldova, thereby making a further significant contribution to the peaceful settlement of the Transnistrian conflict".

The EP recommendation is part of the recent approach regarding the need of finding ways to break the vicious circle enjoyed by Transnistrian leaders due to Russia’s direct support, turning down any initiatives to settle the conflict without abiding any consequences. It seems that the new idea means the possibility to impose restrictions on separatist leaders, if they continue to unjustifiably torpedo initiatives capable to approach the conflict resolution. The EU has introduced travel restrictions on 17 Transnistrian high-ranking officials a couple of years ago, asking now Ukraine to do the same. If Ukraine refuses now, this measure could become a reality later on, the way it happened with the control on the Transnistrian segment of the Moldovan-Ukrainian border. Of course, Transnistrian authorities had a negative reaction to the EP recommendation, saying that the restricted right of separatist leader to travel is a violation of human rights. They care much about their rights, but they forget that the EP adopted a resolution last summer signalling the violation of human rights in Transnistria by leaders of the secessionist region. If Ukraine invokes that it could not restrict Transnistrian leaders from entering its territory because they are Ukrainian and Russian citizens, Moldova could seek a new direction of the interdiction; that means it could admit Transnistrian leaders to leave the eastern region of the country via Ukraine, demanding a ban to enter the Moldovan territory via the Transnistrian segment and declaring them persona non grata. Ukraine practices such interdictions for Russian citizens and even MPs whom it accuses of undermining its statehood. Of course, legal subtleties must be minutely elaborated, but this could be done only at the insistent recommendation of the EU to Ukraine in the light of the Common Foreign and Security Policy. This approach could prevent accusations of violation of human rights, and a motivation for this interdiction would be that the separatist leaders breach the Moldovan Constitution and torpedo any conflict resolution initiatives.

Another important event is the statement by EUBAM head and General Ferenz Banfi, who said on November 21 that the Transnistrian region is a place where Ukrainian citizens massively register luxury automobiles in exchange for small fees and avoid the high taxes of Ukraine. He noted that approximately 400 cars were registered in nine months of this year. This is could be seen as a hint at the trafficking in automobiles stolen in Europe and it justifies somehow the decision to restrict the traffic of motor vehicles with Transnistrian number plates.

d) Russian Federation

Russian authorities have decided to open 24 polling stations in Transnistria in order to let more than 100,000 Russian citizens who reside the secessionist region "exercise their right to vote" at the December 2, 2007 parliamentary elections. Thus, they ignored an appeal by the Ministry of Foreign Affairs and European Integration (MFAEI) of Moldova, which opposed these intentions. As a result, the Russian Embassy to Moldova released an ample commentary, saying that it does not recognise the independence of Transnistria, but calls for the "guaranteeing of the right to vote of Russian citizens, no matter where they are." It is curious, but arguments invoked by Russian authorities concerning international documents and the basic Moldovan-Russian treaty should be effective for Ukraine, too. The Transnistrian Central Electoral Commission has truly called upon Ukrainian authorities to open polling stations in the separatist region, so that 65,000 Ukrainian citizens be able to cast their ballots at the March 2006 ordinary parliamentary elections and September 2007 early elections. However Ukrainian authorities respected the MFAEI stance and they did not open polling stations. In contrast, the Russian authorities made an inverse decision within the same international and bilateral framework, saying that they have troops in Transnistria and that justifies measures aimed at opening as many polling stations as they want. Again, very curious argument as Moldova urges Russia for many years to withdraw its military presence from Transnistria. For a long time it became obvious that the Russian military presence notably is the ground of the vicious circle – Transnistrian authorities want to incorporate the region into the Russian Federation and they do not want the Russian military to leave the secessionist enclave, while Russian authorities claim that they cannot pull out the troops because the Tiraspol administration opposes. It is very comfortable for argumentation.

The Russian military presence was also debated at the November 29–30 Madrid OSCE Ministerial Summit. Transnistrian foreign minister Valeri Litskai has also attended the Madrid summit thanks to Russia, which persuaded the Foreign Ministry of the host country which runs the OSCE Chairmanship to issue a visa to him, in spite of the EU travel ban. If this was the great stake, the presence of Litskai in Madrid was useless, as the OSCE Summit failed to adopt a final declaration for the fifth year in a row. Instead, Litskai made a description of the OSCE work of which he is unlikely proud. It is worth to note that the Moldovan authorities maintained their stances regarding the necessity of pulling out the Russian troops from Transnistrian in compliance with the commitments assumed at the November 1999 Istanbul OSCE Summit. In spite of the Russian moratorium, the NATO member states maintained their attitude regarding the ratification of the Adopted Conventional Forces in Europe Treaty, invoking the arguments of Moldova and Georgia.

At the same time, Moldovan authorities did not tackle in Madrid the ignorance of their opposition against opening of 24 polling stations by Russia. Instead 20 Moldovan NGOs held a news conference in Chisinau and called the things by name. They said how Russia’s conduct in Transnistria is called when: Russian citizens rule Transnsistria; the Russian Government provides financial and economic support to the secessionist region; the Russian military presence ensures the security of the breakaway enclave under any pretexts; the same military presence justifies the organisation of elections for highest representative bodies of the Russian Federation, etc.? It is unclear why the Russian Federation was unsatisfied with the ECHR arguments in "Ilascu case", as the European Court found that Russia is completely controlling the Transnistrian region and, therefore, it is responsible for all actions there.

e) Conclusions

The November developments revealed that "Voronin’s initiatives" in Moldova are like "Putin’s Plan" in Russia; that means everybody should read newspapers or watches "analytical broadcasts" in order to make an impression on them. Transnistrian leaders have made very negative impressions about "Voronin’s initiatives" and for this reason they chose "Putin’s Plan", opening 24 polling stations in Transnistria, a part of the sovereign Moldova, to participate in the elections for the Russian State Duma.

After reading newspapers and watching "analytical programmes" the main conclusion is that the essence of "Voronin’s initiatives" is generally reduced to recognising Russia’s property right on main enterprises in Transnistria in exchange for its support for settling the conflict. The November developments revealed that Russia is interested in properties, but it firmly insists that the conflict be settled by two equal parties, in line with the May 1997 "Primakov Memorandum".

As the Russian Federation invoked the need of "ensuring the human rights," opening 24 polling stations in the eastern districts of Moldova while assuring that it recognises the independence and sovereignty of this country, the Chisinau authorities even more so have to ensure the equal rights of all citizens in the region concerned and prevent the discrimination. But Moldovan authorities fail this task. Thus, 100,000 Russian citizens who reside Transnistria could vote for the State Duma on December 2, 2007, while 65,000 Ukrainian citizens could not elect the Supreme Rada on September 30, 2007. It is interesting that there are no differences between the status of Russia and Ukraine in Transnistria in terms of international law and bilateral relations with Moldova, perhaps except for the "Putin Plan" and "sovereign democracy" in Russia, which produce international effects, with Russia demonstrating this way that Ukraine does not know the "international law" and it does not ensure the rights of own citizens? The attitude of Moldovan authorities towards this injustice in ensuring "equal rights" may hint Ukraine to equal its number of military observers and citizens with the number of Russia in Transdniestria.

The only real possibility to encourage a lasting solution to the Transnistrian conflict is to motivate the Tiraspol leaders through methods that the EP Resolution has recently recommended to Ukraine. The eventual opposition against this initiative is explainable, as Ukraine has actually incorporated Transnistria in its domestic consumption market and there are many persons in the neighbouring country which profit of the status quo of Transnistria. Under these circumstances, Moldova may try to persuade the EU to condition the progresses in relations with Ukraine with the gradual elimination of conditions which fuel the existence of the status quo. The principle of the Common Foreign and Security Policy suggests this thing.

Finally, a simple question should be answered before the eventual restart of the negotiation process in the "Five-Plus-Two" or other format – how can Russia be a mediator and guarantor of the settlement of the Transnistrian conflict if it can hold legislative elections in the plenitude of electoral process, 17 years after the separation of Transnistria from Moldova, while Moldova could not do this at least once during the 9 national electoral campaigns? The answer to this question will raise other questions for sure, notably regarding the role of the Russian military in the region, Moldova’s sovereignty, the presidential initiatives and "the corn of abundance" from which they effuse, double standards in international policy and those who promote them, etc.

Foreign Affairs

European integration

COEST EU-Moldova Troika Meeting

Brussels hosted the COEST EU-Moldova Troika Meeting on November 21–22. Deputy Minister of Foreign Affairs and European Integration Valeriu Ostalep headed the Moldovan delegation. The meeting focussed on bilateral relations between the European Union and Moldova, issues related to the work of the EU Border Assistance Mission to Moldova and Ukraine, Transnistrian conflict and internal developments in Moldova.

In Brussels, Mr. Ostalep has met Marianne Mikko, co-chairwoman of the EU-Moldova Parliamentary Cooperation Committee; Hilde Hardeman, head of unit at the European Commission’s External Relations Directorate-General; Joseph Daul, chairman of the EPP Group in the European Parliament (EP), and representatives of EU member states.

The meetings of the Moldovan official were part of Moldova’s effort to persuade its European partners to support its desire of succeeding to a new quality of relations with the EU. On the occasion of the COEST EU-Moldova Troika Meeting, Ostalep reiterated that the Chisinau authorities are interested to begin negotiations on a new legal document, which would allow Moldova to gradually join the EU four-freedom area.

Visa facilitation and readmission agreements

The EU Council approved on November 29, 2007 the EU-Moldova visa facilitation and readmission agreements. EP approved the agreements on November 13, while the Moldovan Parliament ratified them on November 8. The enforcement date will be published in the EU Official Journal. The agreements are expected to enter into force on January 1, 2008.

Bilateral cooperation

Republic of Moldova – Romania

Romanian Foreign Minister Adrian Cioroianu and Romanian Ambassador to Moldova Filip Teodorescu have reassured that Romania is interested in continuation in developing advantageous relations with Moldova and it remains the purposeful supporter of Moldova’s bids to join the EU. They reaffirmed the sincere willingness of the Romanian state to help approaching a European future for Moldova.

Cioroianu said that Moldova is the priority beneficiary of development assistance which will shortly become operational^[1]. Speaking about problems related to issuance of Romanian visas for Moldova citizens, the minister noted that some of them are linked to the blockage which occurred after Bucharest has sought more than once the enlargement of the Romanian consular network in Moldova.

As regards the possibility to recognise the Schengen visas and stay permits issued by EU member states in order to withdraw the Romania transit visas for Moldovan citizens, Cioroianu stated that a draft decision in this regard is being finalised in Brussels and it could enter into force soon. He also discussed the idea to issue Romanian visas at border crossing stations, noting that community regulations allow the issuance of such visas in emergency situations only.

In his turn, Filip Teodorescu said that the Consulate of the Romanian Embassy in Chisinau has renounced the online appointment system for visa applicants and now it follows the principle "the first comer is served the first." The diplomat emphasised that the Romanian Consulate will move to a larger headquarter in December 2007 and it will be able to process about 650–700 visa applications a day, and it will introduce a call centre appointment system, if the number of visa applications will be bigger than the processing capacity of the Consulate in continuation.

Speaking about trade exchanges between Romania and Moldova, the diplomat said that they are on the rise. Trade exchanges between the two countries were valued at about 600 million dollars in January-September 2007, compared with 564 million dollars in 2006. These data invalidate the hypothesis that the trade exchanges with Moldova will seriously regress after Romania’s accession to the EU.

Republic of Moldova – Russia

The Moldovan Ministry of Foreign Affairs and European Integration (MFAEI) has noticed in the period concerned that accordingly to international norms, the Russian Federation can open polling stations in Moldova for the December 2 elections in the State Duma, but only within its embassy.

However, representatives of the Moscow central electoral commission have announced that 24 polling stations will open in Moldova: one in the Russian Embassy in Chisinau and another 23 in the Transnistrian region. It explained that the international law declares the places where armed forces are dislocated as locations with an extra-territorial status, and therefore, Russia can hold elections in the Transnistrian region without the consent of Moldova.

Replying to this statement, the MFAEI reiterated its attitude towards opening of polling stations in the Transnistrian region.

Regional cooperation

Republic of Moldova – CEFTA

Moldova took over the one-year CEFTA Chairmanship at the November 21 meeting of CEFTA prime ministers in Skopje, Macedonia.

Accordingly to the governmental press service, First Deputy Prime Minister Zinaida Greceanii has stated that the Moldovan CEFTA Chairmanship will organise meetings on adjustment of legislation on customs management, origin, standardisation rules, and withdrawal of barriers on way of trade, etc.

The meeting adopted a declaration of prime ministers which indicates milestones of future cooperation in the region and full implementation of the CEFTA Agreement.

Republic of Moldova – CEI

The Bulgarian capital of Sofia hosted the Central European Initiative (CEI) Summit on November 27. Prime Minister Vasile Tarlev represented Moldova at the event. Bulgaria handed over the CEI Chairmanship to Moldova during the summit. Besides the CEI Chairmanship, Moldova took over the CEFTA Chairmanship and it is due to take over the chairmanships in the South East European Cooperation Process and the RACVIAC Initiative. By running these organisations in 2008, Moldova hopes to improve its regional and European image, to demonstrate that it is a trustworthy regional partner, to strengthen its relations with the states participating in these commitments and to seize this opportunity in order to approach the EU more.

Premier Vasile Tarlev has told the summit that the Moldovan CEI Chairmanship will hold political and sectoral events, in particular, on tourism, science, transportation and energy.

According to the documents approved at the summit, the CEI fields of activity – human development, economic development and institutional development – have been reduces; the participants redefined the CEI goals, in particular the structuring of cooperation matters, revision of financial system of the opposition, coordination of activities with various regional players. Strengthening the cooperation with member states and assisting CIE members to join the EU are basic tasks of the organisation in continuation. At the summit, Ambassador Pietro Ercole Ago was appointed director of the CEI Executive Secretariat.

Multilateral cooperation

Republic of Moldova – OSCE

The 15^th Meeting of the OSCE Ministerial Council took place in Madrid, Spain on November 29–30. For more details, see the "Transnistrian problem" chapter.

Republic of Moldova – Council of Europe

ECHR judgments

The European Court of Human Rights (ECHR) has sentenced Moldova in another 5 cases in the period concerned: Popovici vs. Moldova, Ursu vs. Moldova, David vs. Moldova, Timpul Info-Magazin and Anghel vs. Moldova, and Turcan vs. Moldova. Moldova was sentenced for illegal detention of applicants, inhuman treatments, and violation of the rights to a fair trial, effective appeal and freedom of expression. Moldova will have to pay 49,300 Euros (approximately 818,400 lei) to the applicants in the 5 cases.

The ECHR has sentenced Moldova in 103 cases until now^[2]. It passed 58 judgments (51.5 percent) vs. Moldova in 2007 only.

Studies, Analyses, Comments

Party legislation: Quo Vadis and how?..
Sergiu Grosu

The "revision of legislation on political parties accordingly to European norms"^[1] is one of legal actions that the Republic of Moldova should take in line with the Resolution and Recommendations by the Committee on the Honouring of Obligations and Commitments by Member States of the Council of Europe (CoE). The Parliament has pledged to honour this commitment by the end of the 2006 summer session, accordingly to the political consensus. But the speaker acknowledged at the end of the 2007 summer session that this commitment was not honoured, and promised that it would be tackled and fulfilled by the end of this year. As 2008 is a pre-electoral year, the Parliament was expected to approach the modification of the legislation on political parties, trying to adopt new regulations in this area. But what will be the new regulations, will they envisage the examination of the 2006 draft only or an ampler legislative package, these are questions that both the governors and the opposition will have to answer as soon as possible. Given the complexity of the problems, ample and appropriate answers are recommended.

I. Evolution of legal-normative framework

A short summary of evolutions regarding the existing legal framework and modification processes is required before assessing the advantages and disadvantages of the draft law from the priority agenda of the Parliament.

1. Law # 718-XII from 17.09.91concerning parties and other social-political organisations

The document regulating the principles of building, functioning and dissolution of parties and other social-political organisations (hereinafter parties) was adopted much time before the enforcement of the new Constitution of the country. Although it has undergone 12 modifications, the law is out-of-date and does not comply with modern standards, requirements and criteria in the area, in particular:

• The Constitutional Court has examined many norms of the law^[2];
• A series of regulations are regarded as restrictive and contrary to European democratic standards^[3];
• Many contradictions occur when authorities apply this law, some interpretations affect the freedom of political association, other related rights^[4];
• International institutions recommend insistently the revision of the Moldovan legislation on parties^[5].

2. Relevant decisions by Constitutional Court

A. Under Decision # 37 from 10.12.98 concerning interpretation of Article 41 (1) of the Moldovan Constitution, the Constitutional Court ruled as follows:

• The Constitution does not obstruct the voluntary association of citizens into parties and other social-political organisations, but every political association of citizens (party or social-political organisation) must obtain a status of legal entity, in order to honour the goal for which it was created;
• The establishing of additional criteria resulting from the goal of building political associations – gaining the power – is not excluded. In this respect, the legislator could establish other criteria for registration of a political party as regards the mode of building, the goal of building, the existence of a patrimony, of an independent structure, registration of party, respect for the representation principle;
• The representation principle does not contravene to the constitutional freedom of association of citizens, but it could be unconstitutional if its effects suppress the right to association or if it produces suppressing effects;
• The legal regulation of the mode and conditions of participation of parties and other social-political organisations in elections is based on provisions of an organic law accordingly to Article 72 (3) (a) of the Constitution.

B. The Constitutional Court concludes in the Decision # 3 from 29.01.99 concerning the control on constitutionality of some provisions of the Law # 146-XIV from September 30, 1998:

• The establishing of the numerical criterion of representation of parties rests with an organic law, that means with the discretion of the Parliament, and the Court cannot examine it as long as its effects do not suppress the political pluralism principle stipulated by Article 1 (3) of the Constitution;
• Article 41 (2) of the Constitution stipulates that parties and other social-political organisations are equal in front of the law, that means parties must not be discriminated when they are created, they are ensured optimal conditions for an efficient work aimed to accomplish the statute-related goals;
• The introduction by the law of a term for a new registration of political parties accordingly to the new legally imposed requirements does not discriminate parties.

C. The Constitutional Court adopted on June 3, 2003 the Decision # 11 on control of constitutionality of some provisions of the Law # 718-XII from September 17, 1991 "Concerning parties and other social-political organisations," noting as follows:

• The introduction of a minimum number of party members in 2nd-level administrative territorial units needed for the registration of a party meets the constitutional norms, given the representation criterion which rests with the discretion of the legislature;
• The record measures and responsibilities imposed to decision makers of parties, the presentation of reports to some public institution by these persons, and the collection of signatures of party members do not restrict the freedom of association into parties guaranteed by Article 41 (1) of the Constitution;
• The provisions requiring the registration of membership of a party or other social-political organisation meet the supreme law;
• The Parliament cannot extend the dissolution requirements as a form of sanctioning political parties over constitutional norms strictly delimited by Article 41 (4), and political parties and other social-political organisations can be liquidated only accordingly to Article 41 of the Constitution and with the notification of the Constitutional Court;
• If Article 41 (4) of the Constitution is violated, the measures taken to prohibit or forcedly dissolute political parties will be considered exceptional and accordingly to the proportionality principle stipulated by Article 54 (4) of the Constitution.

3. Draft law on parties and other social-political organisations (2000).

On August 2, 2000, the Government approved and delivered to the Parliament for examination the draft law on parties and other social-political organisations^[6] worked out by the Ministry of Justice with the support of independent experts and specialised international organisations (IFES Moldova, USAID). The draft contained 59 articles structured into 8 chapters, with essential innovations including more detailed regulations on party building procedure and norms on funding of parties, financial control and transparency of financial activity. This document was adopted in the first reading in late 2000 and the Council of Europe examined it later^[7]. The final examination of the document was suspended because of the political conflict in early 2002 and negotiations between the Government and the opposition (within the Roundtable). Further, in the virtue of the 2005 parliamentary elections, the parliamentary majority avoided approaching problems capable to give birth to political controversies. The perspectives of resuming the examination of this draft were unclear. In all likelihood, the Parliament abandoned the idea to examine it, though it had earlier accepted this document in principle.

4. Civil Code (2003)

The new Civil Code, which contains norms on non-commercial organisations in the Section 5 of the Book I, entered into force on June 12, 2003. The Code attributes the political parties to a form of these organisations – the association (Article 181 (2) of the Civil Code), but it allows the law (Article 181 (6) of the Civil Code) to establish the particularities of constitution, functioning and legal status of various associations. However, the general norms of the Code must find an adequate coverage in this legislation and, therefore, a new law on parties must contain special and clear norms concerning:

• The statute of the organisation (including the name, domicile, date of birth, citizenship, and other data from identity acts of founders);
• Conduct of economic activities (statutory or additional);
• Conflict of interests and ways to settle it.

Of course, these provisions cannot be expressed in diverse formulations, with the legislator enjoying a quite large field of manoeuvre, and this is an extremely important thing under the domination of a parliamentary majority with specific preferences, and they are formulated in the new law on parties.

5. Draft law on financing of political parties and electoral campaigns (2005)

Accordingly to the Legislative Programme for 2005–2009, the Parliament has pledged to examine in 2006 a draft law on financing of political parties and electoral campaigns (this being a priority against corruption). The Government had also pledged to ensure the elaboration and promotion of this document by including it in the National Programme on Implementation of the Moldova-NATO Individual Partnership Action Plan^[8]. The Ministry of Justice has worked out a special draft law aimed to regulate the financing of parties in general and during electoral campaigns, with the draft containing regulations concerning the control on funding, restrictions (interdictions) and sanctions for violation of legal norms in the field^[9]. The Government approved the document on autumn 2005 and delivered it to the Parliament. However, the legislature did not adopt it in the due time, and it seems that it gave up the examination of this document without revealing the reasons.

II. Draft law on political parties (2006)^[10]

Several lawmakers representing the Communist and Christian Democratic factions tabled a new draft organic law on political parties in late 2006, and the document was conceptually examined and approved through an urgent procedure without preliminary public debates^[11]. Just on spring 2007, after the CoE has examined the draft, an ampler and in-depth debate on this document was organised as part of a conference held with the support of the CoE and OSCE, with the participation of developers of the initiative from the parliamentary agenda and other interested subjects^[12]. Paradoxically, the topic did not raise a special interest among extra-parliamentary political parties, with their participation in debates being anaemic. Nor even parliamentary parties, except for developers, proved initiative and activism in debating the document, with most of objections and proposals coming from CoE experts and nongovernmental organisations.

Essential provisions of the new draft law^[13] envisage:

• Restrictions for parties (Article 3);
• Competences of political parties (Article 4);
• State support (Article 5 and others);
• Record of parties (Article 12);
• Obligations and responsibility, including the obligation of holding general assemblies and updating the lists (Article 20);
• Reorganisation, suspension and cessation of activity, including for inactivity (Chapter 5);
• Patrimony and funds (Chapter 7).

The main innovation of the draft is the inclusion of new provisions on financing of political parties from state budget besides regulation on creation, registration and work of parties.

Shortcomings of the draft and criticism against this document

The document was worked out in a hurry, without taking into consideration the previous objectives and proposals regarding the regulation of this field. Thus, international and national experts reiterated the old shortcomings and signalled other faults such as the shortage and imperfection of regulations on financing, transparency, responsibility, correlation between diverse legal acts of the same level.

a) Opinions by CoE experts^[14]

According to expertises by the CoE secretary-general and the Venice Commission, the draft law is an "important step forward", a document providing the "opportunity to build a modern party funding system and to enhance transparency and responsibility as regards the financing of parties." At the same time, CoE experts indicated many provisions that should be improved, as well as matters unregulated by the new document. The shortcomings and objections envisage general regulations (creation, registration, functioning and dissolution of parties) and special regulations (financing, control on activity and use of funds, transparency and responsibility, etc.).

General shortcomings:

• A short and general communication is attached to the draft without an adequately explained memoir^[15];
• The restrictions on activity of parties (Article 3) are too severe and they do not fully meet the European Convention for the Protection of Human Rights (ECPHR), affect the fundamental democratic principles^[16];
• The orders allowing the �citizens of the Republic of Moldova" and banning foreigners and stateless people to join political parties are restrictive and contrary to the CoE standards^[17];
• Article 9, which imposes political parties to have at least 5,000 members in order to get registered (including at least 150 residents of 2^nd-level territorial units) are excessive compared with thresholds in democratic countries in West Europe. These norms harden the freedom of association (Article 11 ECPCH)^[18];
• The provisions of Article 9 requiring data on party members and Article 20 requiring the periodical updating of these data are disproportional with the standards accepted by the Venice Commission^[19].

Objections and shortcomings regarding funding, control, reporting, transparency:

• Article 27 contains internal contradictions because it allows parties to own certain goods and on the other hand bans the economic and commercial activity without appropriate explanations (publishing for itself and others)^[20];
• The provisions of Article 28 which exempt some incomes from taxes may produce difficulties and misinterpretations; these problems must be remedied through additional elaborations and concomitant modification of the fiscal legislation^[21];
• Stipulations forbidding foreign financing (Article 28) must be essentially clarified because they are able to limit the rights of Moldovan citizens from other countries and this would be a violation of Article 11 of ECPHR^[22];
• Article 28 does not clearly explain the funding restrictions for some public entities (state institutions and foundations, municipal enterprises). Also, it does not ban the contributions on behalf of others (the so-called "laundered" contributions)^[23];
• The draft law must be completed and seriously amended as regards^[24] a better internal control; sanctions for violation of rules on functioning of parties and electoral campaigns; independent monitoring (by CEC, etc.); reporting; illegal expenses; prohibited funds; external appeals (media, citizens, etc.); control on financial reports and state budget funding, etc.

b) Other essential shortcomings of the draft^[25]:

1. The draft was unfairly elaborated and promoted in the first (conceptual) reading, without preliminary public debates. The argumentation and communication attached to the draft are insufficient and superficial, which means that the elaboration was not preceded by scientific investigations regarding political, social, economic, financial, legal, other consequences of the regulations.
2. The document lacks an economic-financial ground, though the new regulations require very large founds in order to be enforced. The lack of a ground reveals a formal approaching of financial aspects, while the budgetary funding is considered the main innovation of the draft.
3. The text of the draft does not fully comply with the legislation in effect: the Civil Code (regarding the definition of parties as private legal entities without a lucrative goal), Electoral Code (regarding the CEC status and competence, rights of parties during electoral campaigns, financial and material matters, etc.); Tax Code (record of funds, reporting, facilities), and others.
4. The criterion "of administrative territorial organisation of a party" is vaguely formulated, and the level of administrative-territorial organisation (national/republican, 1^st or 2^nd level) is not specified.
5. The draft does not stipulate the functioning of regional parties, while the administrative territorial organisation of Moldova admits the regional level (ATU Gagauzia and Transnistria).
6. Provisions of Article 2 (2) harden the functioning of leading bodies, branches and structures of political parties in the Transnistrian region because this territory is not "under the jurisdiction of the Republic of Moldova." On the other hand, the law admits the existence of branches, but it does not stipulate the creation and functioning of these entities.
7. Article 2 (3) stipulates some interdictions regarding the creation of "structures" and "bodies" of political parties "within institutions, enterprises and organisations," without making clear inherent aspects: – what do "structures and bodies" mean (officialised entities with pre-established competences or simple political groups); – any enterprises, institutions and organisations (public, private, with or without legal entity) are envisaged; – the formula "within" means building officialised structures and bodies as part of structures and bodies of political parties in the territory (in headquarters) of these entities, etc.).
8. The draft does not stipulate express important principles regarding the functioning of party such as legality, transparency, independence, self-administration, gender equality.
9. Norms and notions from Articles 3 and 24 ("democratic values", "rule of law", "ideas running counter the Constitution") are capable to limit political rights, the freedom of association and expression, a fact signalled by CoE experts, but developers neglected the relevant ECHR jurisprudence^[26] when they worked out the draft.
10. Article 4 (3) will be applied on "political alliances" which are also envisaged by Article 14 (1) (i) of the draft, but the law does not regulate their creation and legal status (the Moldovan legislation does not regulate these matters in general).
11. Article 7 (4) is equivocally formulated, the interdiction it refers to (participation in political events) may be temporary; it does not establish a concrete connection between interdiction and exercising of a public position. It does not clearly indicate the positions for which the membership to a political party is prohibited, and this is a serious omission.
12. The last paragraph from Article 10 awards pretty wide discretionary attributions to the Ministry of Justice:
• It lacks express grounds to demand the annulment of the registration (for example, forgery of signatures of members);
• It lacks a concrete term when the annulment of registration can be demanded;
• It does not stipulate the right to further remedy problems and obstacles;
• Now the annulment of registration may be sought for minor reasons (some provisions which, accordingly to functionaries, obstructed the registration, are discovered in the programme or statute; some errors are discovered in the declaration on party headquarter; some signatures by party members are withdrawn and the minimum number is lower than stipulated by law, etc.).
13. In order to ensure transparency and a plenary access to public information, some provisions must be introduced in Article 12 to explain the information from the register of political parties kept by the Ministry of Justice (as for example: name; registration decision; headquarters; leader and his contact details; statute and programme of the party; international affiliation, etc.). The law would stipulate that the information from the register must be published on the website of the Ministry of Justice within a certain term.
14. In order to enhance the responsibility and ensure an adequate control inside the party, the law should oblige parties to indicate the following provisions in the statutes: - concerning internal control (auditing) (on management of funds and patrimony); – the structure in charge with control (auditors, financial officers) and the creation of this structure, prevention of conflicts of interests; – rights of members to be informed (anytime) about revenues and expenses of the party.
15. Article 25 stipulates the possibility to demand the dissolution of a political party because the "goal or activity of the party has become illicit or contrary to the public order", with this formula allowing abusive interpretations and applications (any insignificant violation of public order is contrary to the public order). According to the article, the dissolution is allowed if "the party follows another goal than the one stipulated by its statute and programme," and this fact bans a temporary, minor, non-dangerous goal because it is not formally indicated in the statute or programme of the party.
16. Article 28 concerning funds of political parties must be modified and completed, so that to enhance the responsibility of parties, facilitate the legal activity and prevent and combat eventual violations:
• The possibility to raise funds from bank credits and interests, sales of party goods, rent of own spaces;
• The party statute must regulate the "use" of the membership fees;
• Collection and payment operations cannot pass via accounts in foreign banks (with a major foreign capital) even if they are based (representations, branches) in Moldova;
• The ban of foreign funds for parties must also cover the funding by joint enterprises, by foreign citizens in Moldova (with a permanent or temporary stay permit); the draft must clarify the funding of parties by individuals and legal entities from the region uncontrolled by Moldovan authorities (Transnistria);
• Completions are required to oblige parties to report their funding every year.
17. Article 32 (1) introduces additional requirements on budgetary funding, but they are useless or even abusive, since once succeeding to the Parliament, parties honour the following conditions: registration as an electoral contestant (independent or electoral bloc), succession of electoral threshold (only those succeeding the threshold can hold mandates), organisation into parliamentary factions (it is presumed because otherwise the party loses many advantages linked to the parliamentary activity).
18. The regulation of Article 32 (1) obliging parties to hold at least 20 mandates in district councils (of 2^nd level) is inadequately formulated. Thus, a party holding tens and even hundreds of mandates in local councils of villages and cities, tens/hundreds of mayoral mandates will be deprived of budgetary funding because it was not active during elections in district councils, which are a medium, intermediary chain of local public administration.
19. In order to improve the prevention and fight against money laundering, Article 29 shall be completed with provisions which:
• Prohibit parties to receive donations from persons who are not allowed to cast their ballots;
• Ban parties to receive donations from gambling businesses (casinos, lotteries, bets, etc.); prohibit or limit the financial donations by associations, foundations and trade unions;
• Limit cash donations at a certain amount, while larger amounts will be donated via appropriately registered financial institutions;
• Describe donations as public information available to any interested person. These donations must be estimated accordingly to their market value;
• Oblige parties to publish general reports on their incomes and expenses in Monitorul Oficial.
20. Article 33 must be completed as follows:
• To limit the use of state budget allocations for (considerable, excessive) remuneration of party members, in particular, of members of leading bodies of parties;
• Provisions concerning "personnel expenses" and "expenses for organisation of political activities" are unclear and incapable to prevent negative practices of abusive distribution of funds between party leaders;
• External control on use of state budget funding (which may be exercised by the Ministry of Justice or Ministry of Finance);
• The article must oblige parties to periodically report the use of state budget allocations.
21. In order to modify the existing provisions and approve new amendments, the electoral legislation must be revised at the same time with adoption and enforcement of the law, so that:
• To regulate the financing of electoral campaigns of parties from state budget;
• To ban the use of funds (from budget or own) in order to bribe electors, to hold charity actions during electoral periods;
• To limit the use of administrative resources by electoral candidates, parliamentary political parties, which enjoy more advantages than other parties (have a priority access to public mass media, receive rooms for meetings, enjoy access to technical means).
22. The draft does not regulate enough the aspects regarding the accordance of acts and activities of existing parties with the new legal regulations. The formula from Article VI, which says that "political parties registered in the Republic of Moldova will adjust their documents on constitution and functioning and work to this law" by a certain date is too general and ambiguous, and therefore, the final and transitory regulations must essentially develop by taking into account the detailed description of all matters: legal, temporary, organisational-institutional, financial, etc.

III. Conclusions

Now the legislation lacks common or consensually accepted approaches regarding:

• The minimum number of members needed to create a party;
• The plenitude of data on members that must be presented for registration and permanently preserved by the Ministry of Justice;
• The annual or pre-electoral updating of the number of members and emerging consequences;
• The dissolution of a party for inactivity;
• The distribution of state budget funds (accordingly to former or future general or local electoral performances; number of voters; number of members, and others);
• Constitution and rights of political and electoral alliances/blocs;
• Re-registration of all parties after enforcement of the new regulations, etc.

Thus, in spite of concerns of foreign experts and international organisations regarding additional requirements for registration and functioning of parties, the Constitutional Court of Moldova does not observe any problems in establishing such requirements (representation, presentation of personal data, re-registration).

At the same time, the dissolution of parties on inactivity reasons is a form of dissolving a party, and the Constitutional Court had earlier noticed that the Parliament does not have the right to extend the dissolution conditions as a sanctioning of political parties over strictly delimited constitutional limits stipulated by Article 41 (4).

The draft from the Parliament’s agenda could help develop the political party system in Moldova, but the initial version of this document raises many questions, leaving room for abusive interpretations, and it does not introduce enough mechanisms to prevent and combat frauds.

Including the regulations on creation and functioning of parties and norms on funding of parties into a single document and omitting detailed aspects on financing of electoral campaigns is not argued. Discordances with the Election Code and Tax Code will permanently emerge, challenging litigations that the norms of this draft will be incapable to settle. Therefore, the law on political parties and the law on funding of political parties and their electoral campaigns must be separately elaborated and examined.

In order to prevent accusations of political favouritism and retroactive application of the law, which privilege the acting parliamentary parties, the new provisions on funding of political parties from the state budget should be enforced after the next general elections (the 2009 parliamentary elections).

The regulations on bookkeeping, control and audit of financial and material means of parties, their circulation and use must be described in details, without allowing equivocal interpretations. At the same time, the sanctions for violations in this area should be strictly and clearly regulated, and these breaches should be clearly formulated.

The competence of the Central Electoral Commission in this field must be widely approached and we subscribe to the opinion by a CoE expert that the Commission should be awarded additional rights, including to perform the audit or demand it, to work out and impose specific regulations on financing and financial audit.

Abuses during funding campaigns reduce the credibility of the democratic system, deep the distrust of electors towards functioning of this system for sure. Statements on reformation of the electoral funding system should be followed by real proposals and tested and efficient mechanisms. However, these mechanisms are uncomfortable for those falling under the incidence of these regulations and ruling parties or parties with a certain rating experience the discomfort, so that the reformation is only mimicked.

The contributors to this issue are:

Igor Botan
Iurie Gotisan
Sergiu Buscaneanu